A company has collected the following information regarding price and demand for a single product; Monthly...
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A company has collected the following information regarding price and demand for a single product; Monthly demand( units) 750,000 Price(Tshs). 250 250,000 350 It is believed that there is a linear relationship between the price set and the quantity demanded. In addition to the above, the company wishes to maximize profit and has produced the following data; Fixed costs Tshs 1,000,000 per month Variable costs Tshs 240 unit per Required; i) Establish the price-demand relationship p=400000000 (20 marks) ii) Determine the price and quantity for maximum profit. (30 marks) 4320 iii) Calculate the maximum profit (15 marks) A company has collected the following information regarding price and demand for a single product; Monthly demand( units) 750,000 Price(Tshs). 250 250,000 350 It is believed that there is a linear relationship between the price set and the quantity demanded. In addition to the above, the company wishes to maximize profit and has produced the following data; Fixed costs Tshs 1,000,000 per month Variable costs Tshs 240 unit per Required; i) Establish the price-demand relationship p=400000000 (20 marks) ii) Determine the price and quantity for maximum profit. (30 marks) 4320 iii) Calculate the maximum profit (15 marks)
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